The summertime seesaw at the pump continues this week. After rising 7 cents early last week, Florida gas prices are moving lower again.
The average price for Florida gasoline is $2.67 per gallon. The state average is 4 cents more than this time last week and 23 cents more than a month ago. However, Florida drivers are paying 13 cents less than this year’s high, and 10 cents per gallon less than this time last year.
The brief 7-cent increase last week was a delayed response to Tropical Storm Barry, which caused a short-lived surge in crude and gasoline futures the week before. However, that upward pressure quickly evaporated early last week, upon learning that Barry did little to no damage to Gulf Coast refineries.
Futures price drops accelerated in the middle of last week. Crude oil and gasoline futures sank to 4-week lows, following a bearish report from the EIA, which fueled oversupply concerns. The EIA’s weekly report cited weakening gasoline demand, higher gasoline stocks, and a smaller-than-expected drop in oil supplies. Also pushing crude prices lower is news that oil output from Russia is rebounding from a 3-year low earlier this month.
On Friday, the price of crude settled at $55.63 per barrel — a discount of nearly $5/b from the week before. Additionally, wholesale prices plummeted nearly 16 cents per gallon, lowering the price for retailers to obtain gasoline.
“After quickly rising last week, Florida gas prices are already on their way back down,” said Mark Jenkins, spokesman, AAA
The Auto Club Group.